During the early stages of the pandemic, shelter-in-place orders wreaked havoc on the food and beverage industry because people could no longer “dine out.” Restaurants that relied heavily on dine-in customers struggled to transition into a takeout-only business model and lost significant revenue. The hospitality industry similarly suffered when personal and professional travel came to an abrupt halt. These restaurants and hotels were effectively shut down by the shelter-in-place orders throughout the country, and many turned to their insurance policies to recoup lost revenue. When the insurers denied coverage, service and hospitality businesses filed lawsuits throughout the country to recover under their respective policies for lost revenue caused by the shelter-in-place orders.
